> Are we looking at a future where home computers are replaced by thin clients and all the power lies in subscription services?

No we don't. In Eastern Block during communism everything was either expensive or unavailable to the point that picking up broken TV on the side of the road and dismantling it for parts was making complete sense and you could actually learn something.

Today it is much easier. You can visit eBay or AliExpress and buy old server crap from 2016 - i.e. Xeon E3 + X99 board + 32GB DDR4 RAM = 150EUR or just buying older laptops, computers from eBay. That's where consumer market is heading.

The fact that hardware is going to be computationally constrained will finally force software developers to stop wasting resources. Having application which is able to run on old Windows 10 with i3 and 4GB of RAM without being sluggish will become competing advantage.